The former Die Roten goalkeeper reserved special praise for the club's current shot-stopper, and believes he can go on to rise to the top of football's elite
The 59-year-old said he admires the Bavarians' player, but warned that there is still work to be done if he is to live up to his potential.
"He's a strong keeper, of course. But just because he's playing for Bayern doesn't mean he's the best in the world," Pfaff told TZ.
"Nobody talked about that when he was at Schalke. He can become the best keeper in the world, but he must perform on the top level for some years, for example at the World Cup 2014," he added.
Pfaff went on to praise the 26-year-old's technical abilities, and believes his footwork is a key attribute.
"He's a big factor of stability, because his colleagues know that there's someone behind them who can sometimes save the impossibles," the Belgian continued.
"Neuer is two-footed, can solve any problem without hoofing away the ball. He is playing nearly as well as his team-mates, he could play as a central defender. And that's a big advantage for Bayern.
"They do not have 10 outfield players but 11, that's why it is impossible for any opponent to put pressure on them," he added.
Neuer has been in excellent form so far this season for his club, having played all 17 of his side's league fixtures, keeping 11 clean sheets in the process.
Bayern are currently top of the Bundesliga table with 42 points, with their next fixture coming on January 19 at home to Greuther Furth.